Indian Stock Market: Domestic indices, Sensex and Nifty 50, are expected to open flat on Tuesday, influenced by mixed global cues.
Global Market Overview
Asian Markets:
Asian markets traded mostly higher on Tuesday, buoyed by South Korea’s inflation data. Japan’s Nikkei 225 edged up by 0.18%, and the Topix rose by 0.38%. South Korea’s Kospi increased by 0.17%, with the Kosdaq slightly up by 0.02%. Meanwhile, China’s CSI 300 futures remained flat after reaching a seven-month low on Monday, and Hong Kong’s Hang Seng index futures pointed to a lower start.
Gift Nifty:
Gift Nifty was trading around the 25,355 mark, indicating a premium of nearly 17 points over the previous close of Nifty futures. This suggests a flat-to-positive opening for Indian equity indices.
Wall Street:
The US stock market was closed on Monday due to the Labor Day holiday. However, Dow Jones Industrial Average futures dipped by 63 points (0.1%), S&P 500 futures were slightly lower, and Nasdaq-100 futures posted minor gains.
Oil Prices:
Crude oil prices experienced a drop due to concerns about China’s economic outlook. Brent crude decreased by 0.36% to $77.24 per barrel, while West Texas Intermediate (WTI) crude edged up by 0.53% to $73.94.
South Korea Inflation:
South Korea’s consumer inflation slowed in August, marking the weakest rise in nearly 3.5 years. The consumer price index increased by 2.0% year-over-year, matching the central bank’s target and the median forecast in a Reuters survey. This slowdown reflects the smallest annual rise since March 2021.
Gold Prices:
Gold prices edged lower on Tuesday as investors awaited key US economic data, which could influence the Federal Reserve’s decision on interest rate cuts later this month. Spot gold fell by 0.1% to $2,495.79 per ounce, after hitting a one-week low in the previous session. US gold futures remained steady at $2,527.70.
US Dollar:
The US dollar held steady near a two-week high against the yen and euro. The dollar index, which tracks the greenback against six major currencies, was at 101.69 in early trading, just below the two-week high of 101.79 reached on Monday.
Indian Market Recap
On Monday, the Indian stock market closed higher, with Sensex and Nifty 50 both reaching fresh intraday record highs. The Sensex added 194.07 points (0.24%) to close at 82,559.84, while the Nifty 50 gained 42.80 points (0.17%) to settle at 25,278.70.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., “While the key indices continued their record-breaking streak, selective buying in frontline stocks and the mixed performance of sectoral indices suggest that the bulls may be losing momentum. Investors are likely to remain cautious ahead of the US jobs data release on Friday, which could be crucial for the Federal Reserve’s interest rate decisions this month.”
